Question: Tim Trepid is highly risk-averse while Mike Macho actually enjoys taking a risk. Investments Returns: Expected Value Standard Deviation Buy stocks $9,300 $5,660 Buy bonds

Tim Trepid is highly risk-averse while Mike Macho actually enjoys taking a risk.

Investments Returns: Expected Value Standard Deviation

Buy stocks $9,300 $5,660

Buy bonds 7,580 2,390

Buy commodity futures 26,100 26,700

Buy options 14,200 13,600

a-1.Compute the coefficients of variation.(Round your answers to 3 decimal places.)

Coefficient of Variation

Buy stock. ___________________

Buy bonds. ___________________

Buy commodity futures _________

Buy options ___________________

a-2.Which one of the following four investments should Tim choose?

Buy bonds

Buy stocks

Buy commodity futures

Buy options

b.Which one of the four investments should Mike choose?

Buy bonds

Buy stocks

Buy commodity futures

Buy options

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